Biotech Derivatives Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Derivatives

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LLCF who wrote (69)	4/5/1999 12:30:00 PM
From: LLCF	of 555

O.K. time to put this thread to use for it's original purpose... using our knowledge of pending news to find mispriced options... I am going to put 2 positions on around sales announcements for CORR's "Integrelin" and CEPH's "Provigil". CEPH's earnings are due out May 12, and I believe they will proceed that with some statement about Provigil sales, because they seem to be the type of company that can't keep their mouth shut. Therefore I am initiating this trade today... buying the May 10 calls for 1 1/16 and selling stock @ 10 1/16 (synthetic straddle) which would be equal to buying the calls and puts. This trade is available in the market today for a price of 2 5/16 for the May 10 Straddle. Lets see what happens:) I am waiting to position CORR until at least next week, this is because CORR has already said they will NOT release Integrelin sales data before their quarterly earnings (April 25th?). Disclaimer... I am LONG CEPH, and will "lean long" when initiating this position personally, but for purposes of this experiment will assume a "neutral straddle". I may also be buying May 12 calls for my own account from time to time leading up to CEPH's quarterly. DAK

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next